Answer:
A risk adjusted cost of capital
Explanation:
In the case when there is any adjustment made with respect to the projects in terms of more risk or less risk as compared with the average project of a form. Also these type of adjustment would be subjective and difficult to justify so here the problem used the cost of capital i.e. risk adjusted as it can be seen that the more risk is there the higher return is there
Therefore the above is the answer
hence, the same is to be considered
Answer: $1,260 Favorable
Explanation:
Material usage variance = (Standard quantity of materials actually produced - Actual quantity of materials actually produced) * Standard price of material
= [ ( 4 * 6,300 ) - (3.9 * 6,300) ] * 2
= [ 25,200 - 24,570 ] * 2
= 630 * 2
= $1,260 Favorable
Answer: Absolute Advantage.
Explanation:
The countries Cretonia and Fredonte posses absolute advantage in the areas of production of Zhytan and Creosote. Absolute Advantage is the ability of an individual/organization/country to produce more of a product than their competitors within a given time period.
